Kemp calls for insurance commish resignation
Published 8:59 am Thursday, May 16, 2019
ATLANTA — Gov. Brian Kemp has asked Georgia’s embattled insurance commissioner, Jim Beck, to resign just one day after he was indicted on federal charges of wire fraud, mail fraud and money laundering.
“Your indictment severely undermines your ability to fulfill your official obligations to the people of Georgia,” the Republican governor wrote in a letter sent to his fellow Republican state official on Wednesday.
A 38-count indictment accuses 57-year-old Beck, who is the state’s new Insurance and Safety Fire Commissioner, of running an elaborate invoicing scheme that defrauded his employer out of more than $2 million over a five-year period leading up to his election in November, according to the Associated Press.
The charges stem from Beck’s time at the Georgia Underwriting Association, which is an insurance association created under state law to provide high-risk polices to Georgia homeowners.
Kemp noted that Beck’s role as insurance commissioner gives him “significant legal authority” over that same association and its governing board, including the power to appoint members.
“In light of this connection and the possibility of new revelations, it would be highly inappropriate for you to continue to hold public office,” Kemp wrote. “I ask that you do what is right for our state and step down immediately.”
Beck’s attorney, Bill Thomas, told the Associated Press in a statement Tuesday that his client “strongly denies” the allegations, which he noted are not related to Beck’s current position.
Thomas said Beck “looks forward to clearing his good name.” Beck has pleaded not guilty, according to the Atlanta Journal-Constitution.
When asked Wednesday morning if Beck should resign, Kemp said he was still weighing the matter. He would send the letter to Beck later in the day.
“I think it’s very troubling, obviously, but I want to be very thoughtful about this issue and make sure that I have all the facts before I make a decision on what we need to do,” Kemp told reporters. “There’s a lot of legal issues that are tied to that. It’s not as simple as a political question, unfortunately.”
The indictment says Beck used the money for personal expenses and to fund personal investment, retirement and savings accounts, as well as his statewide election campaign, the AP reported. He also allegedly used the funds to buy and improve personal rental property and to pay his personal state and federal income taxes.
He is accused of running the scheme from February 2013 to August 2018, just a few months before voters elected him into office. Beck was elected last year with 50.37 percent of the vote.